Southwest Airlines (LUV) reported a smaller quarterly loss Thursday but said it would likely be profitable in the third and fourth quarters as travel bookings rebounded. Sounds like good news to me but the stock is trading lower on the day.
Let's check on the charts and indicators.
In this updated daily bar chart of LUV, below, we can see that the shares have been on a downward path since early April. Prices closed below the cresting 200-day moving average line and then briefly popped above it. The slope of the shorter 50-day moving average line is negative.
The On-Balance-Volume (OBV) line is in a downtrend from early April and tells us that sellers of LUV are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is well below the zero line but trying to cross to a cover shorts buy signal.